Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Deliveroo Avoids DoorDash Takeover but Faces Continued Interest

by June 27, 2024
June 27, 2024
Deliveroo Avoids DoorDash Takeover but Faces Continued Interest

Deliveroo has recently been the focus of takeover interest from American rival DoorDash, as overseas investors continue to seek opportunities on the London Stock Exchange

Despite initial talks, the potential deal fell through due to disagreements over the acquisition price.

The reported interest from DoorDash caused Deliveroo’s shares to rise by 1.2% to 129p. Analysts at Jefferies suggest that DoorDash’s move may only mark the beginning of further takeover interest. “In this instance, the talks have failed,” the US bank stated. “But the financial, industrial, and strategic logic of a Deliveroo takeover is strong. We would not be surprised to see similar headlines re-emerge in the short term. The key to unlocking a recommended offer from Deliveroo is understanding the sensibilities of founder and CEO Will Shu. This may only be the start.”

DoorDash, a prominent food delivery firm listed in New York with a valuation of about $46 billion, has been among several US bidders targeting UK companies due to the valuation gap between New York and London-listed stocks. Earlier this year, US-based GXO Logistics acquired Wiltshire-based transport company Wincanton for £762 million, aiming to expand into Europe.

Deliveroo, founded in 2013 by American-born former banker Will Shu, thrived during the pandemic when lockdowns boosted home delivery demand. However, the company has faced a decline in orders more recently due to the cost of living crisis. Despite these challenges, Deliveroo reported positive earnings for the first time in March, with adjusted earnings before interest, tax, and other charges reaching £85 million for 2023, compared to a loss of £45 million in 2022.

The company’s initial public offering (IPO) in April 2021 was notably problematic, with shares dropping sharply from a float price of 390p to around 282p on the first day of trading. Deliveroo has since been identified by Jefferies as a potential takeover target, as mergers and acquisitions (M&A) activity increases in the City. The bank suggests that Deliveroo could benefit from consolidation in the technology sector, which could provide economies of scale, higher returns on investment, and greater access to intellectual property rights.

Deliveroo continues to face stiff competition from Uber Eats and Just Eat Takeaway.com. Just Eat, formed from the merger of Just Eat and Takeaway.com, is now the largest food delivery group in Europe with operations in countries including Germany, Canada, Australia, France, and Spain. In April, Just Eat reported order growth of 1% to 60.3 million across the UK and Ireland, applying price cuts to stay competitive, which temporarily impacted Deliveroo’s share price.

As the market remains competitive and the interest from DoorDash indicates, Deliveroo might still be a target for future acquisitions. Investors and industry observers will be watching closely to see if more suitors emerge and how Deliveroo navigates its strategic challenges and opportunities in the coming months.

Read more:
Deliveroo Avoids DoorDash Takeover but Faces Continued Interest

0
FacebookTwitterGoogle +Pinterest
previous post
Balancing innovation and regulatory compliance for online child safety 
next post
Complete Guide on UK Property Market Trends for 2024

You may also like

Rio Ferdinand hopes to score with DeliveryApp investment

June 19, 2023

BBC faces scrutiny over IR35 implementation during government...

February 20, 2024

Recent assessments indicate a requirement for a minimum...

March 12, 2024

Uber records first ever operating profit

August 2, 2023

Remote workers feel “policed” by unpredictable managers

June 14, 2023

How e-invoicing compliance can broaden your business horizons

August 30, 2024

Wales only part of UK to see employment...

August 18, 2022

5 Top-Rated Outsourcing Companies for Technical Support

February 27, 2025

Emils Kerimovs: England’s Financial Resilience in the Face...

September 15, 2024

TikTok rides out wider advertising slowdown

December 6, 2022

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Silver’s Surge is No Fluke—Here’s the Strange Ratio Driving It

      June 6, 2025
    • Friday Feature: Incubate Debate

      June 6, 2025
    • Risch urges ‘top to bottom’ USAID spending review after waste, fraud exposed

      June 6, 2025
    • Universities in Libertarian Land

      June 6, 2025
    • Elon Musk may speak to Trump aides in push to calm feud

      June 6, 2025
    • Everyone Talks About Leaving a Better Planet for Our Children: Why Don’t We Leave Better Children for Our Planet?

      June 6, 2025

    Categories

    • Business (8,149)
    • Investing (2,013)
    • Politics (15,545)
    • Stocks (3,131)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved